There is something to be said about a team’s track record. Take Glenn Dawson, and his team at CUDA Oil and Gas for example. Combined, they have decades of experience. “I have worked with these technical professionals in multiple oil basins in North America. These people know how to find oil!” says Dawson.

The proof is in the numbers. In 2002, after growing Summit Resources from a 200 to a 14,000 barrels-per-day operation, the company was sold to Paramount Resources for $332 million. Fast forward to 2011, when Dawson sold NuLoch Resources after growing production from 0 to 1,500 barrels per day. The price tag on that deal? $327 million – a 249% return for early investors! Dawson oversaw operations at two other companies that garnered similar results. “Four decades in the oil business never gets old and you always want your next deal to be the best.”

Speaking of the next deal, CUDA Energy, headquartered in Calgary, Alberta, joined forces with Quebec based Junex to form CUDA Oil and Gas. The company then acquired 25,000 gross acres south of the border in the Powder River Basin. “I started working in the oil business in 1977 on drilling rigs in Wyoming. That was the hook. I never looked back. Now, I am back in Wyoming 40 years later and still have all my fingers,” he jokes. The asset currently produces 1,600 barrels per day of light oil, 450 BOPD net to CUDA.

Dawson’s first passion was Geology. He completed his undergrad studies in Utah and attended the master’s program at from the University of Calgary. “I have developed a similar devotion to finding oil and building companies,” he says, attributing his business focus and determination to one person. “My grandfather started out in the mail room at CN Rail. He rose to VP of Fuels and Lubricants for the entire company. A self-made person with incredible business sense and a risk taker. He always impressed me.”

Now, Dawson is the one doing all the impressing. In Q4 of 2018 CUDA Oil and Gas closed a financing of $7.2 million. As for market conditions, Dawson and his team made a risky move they believe puts them ahead of the game. “We could see the energy storm coming and made a strategic move into the U.S. and acquired a premium asset that is scalable,” he says of the company’s decision to purchase the Wyoming asset. He admits though, there are still challenges ahead. “Capital management and oil price are currently our biggest challenges and we have started discussions to reposition with financial lenders who believe in the company. We maintain faithful shareholders that are long-term holders and understand our build-and-sell model.”

Cuda began trading on the TSX-V on August 22, 2018. When asked why investors should take note of the stock at this time, Dawson cites three reasons. “CUDA offers a high quality, light oil play with high netback pricing, with abundant pipeline takeaway, scalable conventional and horizontal drilling prospects with significant growth potential at premium prices, and a management team with an exceptional track record.”

Dawson also reminds potential investors, “Management is completely aligned with all of the shareholders as we own in excess of 30% of the outstanding shares. We participate in all issuances of equity. Our goal has always been to build exciting focused companies with a vision to maximize the investors return in the shortest period of time achievable.” A strategy that has worked for this team time and time again.

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Greg Beckett selects companies that he believes are undervalued and have high growth potential.

He suggestes your portfolio of volatile “penny stocks” include 5-20 companies with a 1-5 year hold period. If you invest the same amount in each company, your portfolio will be “equally weighted” then you can rebalance it every 6-12 months. Rebalancing to maintain an equal weighting of each stock is a non-emotional discipline which forces you to “sell high and buy low”. Please consult your Investment Advisor before investing in any company.

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